Hi, this is Wayne again with a topic “How Does Redbox Still Exist?”.
There’S only one blockbuster video rental store left in the entire world, but somehow those redbox kiosks still seem to be outside of every shopping center in the u.s. In fact, they have around 40 000 of them, which is about triple the number of mcdonald’s locations in america. So how is redbox still such a common site in a world that’s now dominated by streaming? Well, although streaming services typically offer lots of content for a pretty low monthly fee, there’s still a pretty big gap in the market. Lots of the movies on streaming services, particularly recent releases, are only available for an additional one-time rental fee that can run up to around six dollars, by contrast, redbox still, rents, dvds and blu-rays for just two bucks, a pop and if you’re out shopping anyways. It doesn’t even cost additional gas money to make a special trip to rent a movie as redbox focuses its business in places where folks are already concerned, with cutting costs are likely to shop stores like walmart and other discounters. Even people who pass through the areas would rather just rent a two dollar film from redbox once or twice a month. Instead of spending 15 bucks in the same time period on a streaming subscription, especially as streaming, is becoming more fragmented, often requiring tv and movie fans to subscribe to several of the services to access all the content they want. Those monthly fees can add up quickly. Redbox is most popular in smaller metropolitan and rural areas that have relatively lower costs of living places that are more likely to have people on the hunt for a good deal, as well as less likely to have access to broadband for streaming. Combine this with how redbox often has movies a customer might not be able to access on their streaming service and suddenly their business model kind of makes sense, and the fact that a vending machine is a heck of a lot cheaper than running to a brick and Mortar store definitely doesn’t hurt, but is continuing to rent out physical dvds. Actually sustainable, we’ll tell you right after we thank freshbooks the invoicing and accounting solution, that’s built for owners and their clients. Freshbooks users save a ton of time and money, we’re talking 11 hours a week that they used to spend sorting through invoices and keeping track of financials plus 94 of freshbooks users say it’s a super easy to get up and running and with award-winning support, you’re, never Alone so switch to freshbooks today and join over 24 million people who have used it and loved it and try it today for free for 30 days, no credit card required at freshbooks.comtechwiki. So, even though redbox has carved out a niche for itself with physical disk, rentals they’ve still been facing declining revenues for the past few years, even with the advantages their kiosks offer, the part of redbox customer base that is stuck with dvds and blu-rays, because they’re late Adopters of the new tech have started to gravitate more towards streaming with ever-increasing broadband speeds, helping to push more people away from disks, so, while redbox isn’t planning to just abandon its kiosks in the immediate future, it’s also dipped its toes into the streaming wars.
They have an app for most platforms like your phone, smart tv or streaming. Stick that offer free live streaming, services of ad-supported movies and episodes kind of like pluto or 2b redbox also has individual rentals like on prime video or itunes, though they’re more expensive than renting their dvds, even for the same movie, meaning you’re paying for that kind of Convenience of not having to go to the kiosk kind of like how a hotel minibar works, but is this going to be enough to compete with other services where streaming is their bread and butter instead of a more recent add-on? Redbox’S plan seems to be to try and create partnerships with multiple studios and content distributors to make its app kind of a one-platform for everything type of solution. Instead of having to go to six different apps to watch all of your content, combined with a loyalty program and original content, redbox hopes they’ll be able to differentiate themselves from other competitors in the crowded streaming market. Only time will tell if they’re able to pull it off, but until they figure it out, you can still dust off your old dvd player and slide in a freshly rented disk there’s just something comforting about it, especially when it doesn’t work, because it’s all scratched. So thanks for watching, if you like this video hit that like button, you can also dislike. If you want, although nobody will ever see it and you can check out our other videos or comment with video suggestions down below and don’t forget, to subscribe and hit the little bell.
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